01 / 19FareRx is a food-first healthcare company.
Clinical nutrition care, medically tailored groceries, and human support for people managing chronic disease.
02 / 19Most nutrition care stops at the recommendation.
Eat differently.
Lose weight.
Control your A1c.
Then the patient goes home.
We put the food behind the recommendation.
The lesson doesn't end when the appointment does. The food goes home.
90% of the nation's $5.3T in annual healthcare expenditures are for people with chronic and mental health conditions. Source: CDC, Fast Facts (2026).
03 / 19Food creates a relationship traditional healthcare struggles to build.
Member Hospitality is the patient-engagement model.
Food access, confidence, support
Engagement, adherence, retention, outcomes opportunity
Trusted relationship, recurring engagement, longitudinal clinical care
Member Hospitality is FareRx's patient-engagement model. The clinical relationship is a growth opportunity, not an achieved conversion rate.
04 / 19The model is already working at scale.
members served
grocery deliveries
delivery success
member satisfaction
2026 management revenue outlook
4-week cohort maintained or improved medication adherence
reported less food stress
tried new healthy foods
more likely to stay with their health plan
Current payer: a leading Blue Cross Blue Shield payer.
The 2025 outcomes analysis includes 102 matched pre/post member pairs across four cohorts. Outcome rates shown are supplied in the presentation brief; measures and denominators differ by question and cohort, and do not represent all 15,000+ members served. Self-reported and observational, not claims-based ROI or measured clinical endpoints. Revenue is a management outlook, not full-year actuals.
05 / 19A ~$120B market. An ~$81M obtainable model requires a tiny fraction of it.
~$19.4B grocery+~$100.2B clinical
~$1.15B grocery+~$2.65B clinical
~$12.5M grocery+~$68.9M clinical
20,000 clinical patients = <0.1% of Americans with diagnosed diabetes.
Band lengths show progression, not proportional market size. Sources: KFF 2026 Medicare Advantage; CMS April 2026 Medicaid (rounded); CDC 2026 diagnosed diabetes. Eligibility, clinical collections, SAM and SOM are FareRx management assumptions. MA and Medicaid lives may overlap.
06 / 19Revenue expands as the relationship deepens.
Grocery delivery
Actual operating modelContribution
39% contribution margin
Clinical patient-year
Modeled Full PlateModeled contribution
56% margin · 43-patient modeled break-even
~$6,924/month modeled fixed clinical cost
Grocery contribution is not QBO accounting gross margin. Clinical amounts are modeled from CY2026 reimbursement assumptions and have not yet been proven through claims history. No PMPM structure is assumed.
07 / 19FareRx connects food delivery and longitudinal clinical care through one patient relationship.
Most models begin with either food or clinical care.
FareRx connects the two through one patient relationship.
Illustrative positions reflect publicly described primary focus, not a claim that other companies cannot offer adjacent services. Foodsmart and Season Health also connect care and food benefits; Mom's Meals offers nutrition counseling alongside meals.
08 / 19Bootstrapped growth. A deliberate shift toward clinical revenue.
From grocery-heavy revenue to a separate clinical census.
The 2027 plan resets the grocery base and models claims revenue. It does not include an acquisition.
| Measure | 2024A | 2025A | 2026E | 2027M |
|---|---|---|---|---|
| QBO gross margin* | 59.6% | 66.1% | ~70% | ~70% |
| Net income | $(204K) | $48K | ~$68K | ~$23K |
| Net margin | (16.2%) | 2.9% | ~4% | ~2% |
2027 is a deliberate bridge year and a planning model, not the long-term revenue trajectory. Clinical enrollment and collections are targets. 2026–27 margins are estimates, not a reconciled budget. QBO gross margin excludes substantial delivery labor booked in operating expenses. Acquisition revenue is excluded.
09 / 19The new model scales patient census faster than fixed infrastructure.
More patients create evidence. Evidence wins distribution. Distribution lowers acquisition cost.
Shared infrastructure. Compliance, security, technology, payer operations and leadership can scale across more patients.
Variable capacity. Clinical labor, food, delivery and local operations still grow with volume.
Management planning case, illustrative for 2028–2031. Not contracted revenue or financial guidance. *2027 combines MNT conversions and separate Full Plate patient-years; these are not ~950 equivalent longitudinal Full Plate patients. 2028–2031 clinical revenue assumes ~$3,443 modeled annual net per patient-year; groceries assume $80 per delivery. No acquisition or unsigned employer-contract revenue included.
10 / 19Built by operators. Delivered by clinicians.
Mike Cangi
Founder & CEO
Kenneth Rice, MD
Medical Director
Kathryn Oakes, RDN, LDN
Clinical nutrition lead
Jean Fox
Philadelphia operations
11 / 19A defined cohort. A six-month test.
Population
Identify a high-risk diabetes cohort with relevant comorbidities; confirm eligibility and baseline measures.
Intervention
Coordinate eligible clinical nutrition care with weekly medically tailored groceries and Member Hospitality.
Evaluation
At month six, examine enrollment, engagement, clinical measures, patient experience, and utilization where data is available.
Pilot design, not a signed employer contract or proven utilization result.
12 / 19Engagement signals, with the cohort clearly defined.
matched pre/post member pairs
4-week cohort maintained or improved medication adherence
reported less food stress
reported trying new healthy foods
Across the report's program cohorts, 72–84% said the benefit made them more likely to stay with their health plan.
The FareRx 2025 Outcomes Report includes 102 matched pre/post member pairs; rates shown come from the presentation brief. Questions and cohort denominators differ. Self-reported and observational, not claims-based ROI or demonstrated clinical-marker change.
13 / 19Two revenue lanes. One addressable opportunity.
12 weeks × $80 per member. 20% assumed eligibility for the combined Medicare Advantage and Medicaid baseline; 1.2M initially serviceable lives; 3,000 weekly deliveries at SOM.
29.1M Americans with diagnosed diabetes × $3,443 modeled annual net revenue; ~770K initially serviceable lives; 20,000 patient-years at SOM.
Grocery: 12-week intervention at $80/week; TAM uses 35.2M MA + rounded 66.0M Medicaid lives × 20% assumed eligibility; SAM uses 1.2M initial PA/NJ/DE lives; SOM uses 3,000 weekly deliveries. Clinical: 29.1M diagnosed diabetes lives × $3,443 modeled annual net; SAM uses ~770K initial lives; SOM uses 20,000 patient-years. MA and Medicaid can overlap. Sources: KFF, CMS, CDC and FareRx management assumptions.
14 / 19The grocery lane has measured operating contribution.
Per completed delivery
$80 revenue less $25 food less $24 direct operating labor equals $31 contribution.
Contribution margin
39% rounded. This is an operating contribution measure, not QBO accounting gross margin.
Accounting distinction
QBO gross margin excludes substantial delivery labor booked in operating expenses.
Actual model inputs supplied in the revision brief. Confirm the current model's time period before wider distribution.
15 / 19The clinical lane is modeled, not yet proven through claims.
Revenue per patient-year
$4,050 gross billed × 85% modeled collections ≈ $3,443 net revenue.
Modeled contribution
Less $1,517 variable cost ≈ $1,925 contribution; 56% rounded margin.
Break-even census
43 patients based on approximately $6,924 per month in fixed clinical cost.
Modeled from CY2026 reimbursement assumptions. Not yet proven through claims history. Payer eligibility, visits and collections determine realized economics.
16 / 19Built to operate inside healthcare.
Clinical
Registered Dietitians, provider NPI, and a Philadelphia Teaching Kitchen.
Security
HIPAA-compliant operations and SOC 2 Type II certification.
Operations
Member Hospitality, food fulfillment, local delivery, and payer-grade implementation experience.
Specific payer credentialing and reimbursement eligibility depend on service, clinician, plan, and market.
17 / 19Human service is the patient-engagement model.
A human answer by phone, a local delivery experience, and repeated chances to learn what gets in the way of care.
Phone-first access
A real support team
Recurring food touchpoints
Follow-through without an app requirement
Same-driver relationships depend on route and staffing availability; not guaranteed for every member.
18 / 19Acquire a head start, not a headline.
A strategic acquisition could reduce the time required to establish a clinical presence in a new market.
- 01Patient census
- 02Payer contracts
- 03Clinicians
- 04Operating infrastructure
- 05Integration into FareRx care
The pending strategic acquisition is excluded from the 2027 forecast. Potentially reachable patients are not enrolled patients or guaranteed revenue.
19 / 19Clinical claims can offset a smaller grocery base.
2027 modeled total $1.143M
Planning model only. Current MA cohort MNT eligibility is distinct from the separate Full Plate population; collections and enrollment remain targets. No acquisition revenue is included.